Core Insights - The Federal Reserve's decision to maintain interest rates has led to stable cash yields, encouraging savers to explore competitive options for their cash holdings [2][3] - Current yields across various cash products, including savings accounts, CDs, brokerage cash options, and U.S. Treasuries, range from approximately 3% to 5%, allowing for meaningful returns without stock market exposure [3][9] - A comprehensive chart has been created to compare the best-paying options across major cash categories, highlighting standout rates in high-yield savings accounts and CDs [4][5] Cash Yield Analysis - Cash options are delivering competitive yields, with the potential to earn significant interest on deposits, such as $200 in six months from a $10,000 deposit at a 4% account [7][9] - The earnings potential varies by account type, with specific examples showing earnings for different balances at various annual percentage yields (APYs) [8] - The best savings accounts, CDs, Treasuries, and some brokerage cash options provide strong returns with minimal risk, emphasizing the importance of selecting the right cash management strategy [9][10] Product Categories - The top cash options fall into three main categories: bank and credit union products, brokerage and robo-advisor products, and U.S. Treasury products, each with unique characteristics and yield structures [11][15] - Bank and credit union products include savings accounts, money market accounts, and CDs, while brokerage options consist of money market funds and cash management accounts [13][14] - U.S. Treasury products, such as T-bills, notes, and inflation-protected I bonds, offer fixed interest rates and can be purchased directly or through secondary markets [14][15]

Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024, despite an increase in shares outstanding due to capital offerings and acquisitions [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses, with a full-year ROA of 1.11% [5] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase from the linked quarter and a 16% increase from Q4 2024 [6] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter and by $869,000, or 9.6%, from Q4 2024 [8] - Non-interest expense for Q4, after adjusting for non-recurring expenses, was $27.6 million, consistent with the linked quarter [10] Market Data and Key Metrics Changes - The company added $106 million in loans and $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [5] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4 [7] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with a target range of 90%-95% [16] Company Strategy and Development Direction - The company aims for mid-single-digit loan growth in 2026, focusing on commercial and industrial (C&I) growth while leveraging Farmers' excess deposits [7][12] - Investments in technology and digital banking solutions are expected to enhance deposit growth and support loan growth [27][40] - The company is committed to maintaining a strong capital position to support organic growth and investments in infrastructure [18] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's ability to generate strong earnings despite mixed economic conditions across the country [18] - Credit quality remains solid, with low delinquencies and stable credit metrics, although there was a slight increase in non-performing loans [19] - The management anticipates a gradual expansion of the net interest margin, projecting a 2-3 basis point increase in Q1 and further growth in subsequent quarters [35] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, reflecting confidence in its financial performance [8][17] - The tangible common equity ratio increased from 6.43% a year ago to 9.54% at year-end 2025, indicating strong capital generation [20] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial loans to lead growth in 2026, with a focus on C&I and potential leasing growth [25][26] Question: Digital channel growth potential - The digital channel is in early stages, with initial success in opening new accounts, but significant growth is anticipated as more products are launched [31][32] Question: Margin trends and interest rate assumptions - Management expects a slight margin expansion in Q1, with potential further increases depending on interest rate movements [35][36] Question: Expense run rate post-acquisition - First quarter expenses are expected to be similar to current levels, with some reductions anticipated after the Farmers conversion [39] Question: Credit quality and non-performing loans - The increase in non-performing loans was attributed to one isolated credit situation, with overall credit quality remaining stable [46][47]

For Synchrony Financial ( SYF ), 2025 was all about growing earnings without much growth in the number of customers or loan balances. Synchrony set itself upI retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income. I mostly write on positions I already hold or am considering changing. I prefer to hold ...

Financial Data and Key Metrics Changes - Net income for Q4 was $21.2 million, or $0.70 per diluted share, down 3.7% due to lower non-interest income [6] - For the full year 2025, net income reached $76.1 million, or $2.51 per diluted share, an increase of 22% [6] - Net interest income increased by 2.9% to $62.9 million in Q4, with net interest margin expanding by six basis points to 3.28% [14][16] - Return on average assets and return on average equity during Q4 were 1.07% and 10.14%, respectively [6] Business Line Data and Key Metrics Changes - Loan production for the full year increased by 36%, with residential and C&I loan production up 90% and 42%, respectively [7] - Commercial real estate exposure decreased from 63.1% to 61.3% of total loans [8] - Deposits grew by 3.8% in 2025, maintaining a healthy mix of non-interest-bearing deposits at approximately 30% of total deposits [8] Market Data and Key Metrics Changes - Deposits decreased by 1.3% in Q4, driven by a decline in demand deposits, money market, and savings [12] - USKC loan balance of $862 million represented approximately 13% of the total loan portfolio [12] - The company opened a representative office in Seoul, South Korea, to strengthen relationships and support customers expanding into the U.S. market [13] Company Strategy and Development Direction - The company expects to generate low to mid-single-digit loan growth while further diversifying the portfolio [19] - Focus on growing deposits to support loan growth and maintaining a stable funding mix [19] - Commitment to disciplined expense management while investing selectively in talent and technology [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of their relationship-based banking model and the strength of their operational performance [4] - The company believes it entered 2026 in a strong position to build on momentum and create meaningful value for shareholders [20] Other Important Information - Non-performing assets as a percentage of total assets and allowance for credit losses as a percentage of total loans remained healthy at 0.26% and 1.07%, respectively [8] - The efficiency ratio improved to 54.7% from 60.3% the previous year [9] Q&A Session Summary Question: Can you provide color on the hospitality credit that was downgraded to Special Mention? - Management indicated that the loan is a senior loan with a strong sponsor undergoing a Property Improvement Plan, and they do not foresee any loss probabilities [22] Question: Thoughts around the growth of expenses and OREO costs? - Management noted that OREO costs might continue for a couple of quarters but are not indicative of ongoing run rates [24] Question: What is the outlook for mid-single-digit expense growth? - Management confirmed that mid-single-digit expense growth is a fair expectation based on previous trends [25] Question: Can you remind us about the CD repricing schedule? - Management provided details on maturing CDs and expected repricing rates, indicating a potential benefit to lower deposit costs [26] Question: Why not be more aggressive on the buyback? - Management stated that the board evaluates capital returns quarterly and will address share repurchases based on market conditions [27] Question: Comments on competition within the CD book? - Management acknowledged intense competition for CDs, with some competitors offering higher rates [32][33] Question: How should we think about the jumping-off point for expenses from Q4? - Management discussed predictable seasonal events affecting expenses and indicated a need for further analysis [38]

Financial Data and Key Metrics Changes - The company reported record net income of $224.1 million for the full year, with diluted earnings per share of $3.88, reflecting a 13.8% increase from the previous year [3] - Fourth quarter net income was $56.6 million, or $0.99 per share, with an annual return on assets of 1.21% and a return on tangible common equity of 14.08% [3] - The efficiency ratio for the year was 54.5%, indicating significant operating leverage with revenues growing almost five times faster than expenses [3] Business Line Data and Key Metrics Changes - Commercial loan growth was robust, with $153 million in growth for the quarter (6% annualized) and $852 million year-to-date (nearly 7% growth for 2025) [7] - The consumer segment also contributed to growth, with $44 million in loan growth for the quarter and $87 million for the year [7] - Total revenues in Q4 showed strong growth, with net interest income increasing by $5.4 million and non-interest income by $0.6 million [11] Market Data and Key Metrics Changes - The company operates 111 banking centers across Indiana, Ohio, and Michigan, with a focus on growing within these markets [2] - The fourth quarter was the strongest for deposit growth, driven by the consumer segment, which saw a $155 million increase in total consumer deposits [8] - The company has seen a stable pipeline for loans, indicating optimism for maintaining loan growth into the first quarter of 2026 [7] Company Strategy and Development Direction - The company aims to build on its Midwestern strength and grow organically through deeper relationships and smarter use of technology [6] - The acquisition of First Savings Group, adding approximately $2.4 billion in assets, is expected to enhance the company's presence in Southern Indiana and the Louisville MSA [3][4] - The integration of First Savings Bank is on track, with a focus on community banking and specialty verticals as priorities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic and financial benefits of the merger, expecting to close the acquisition on February 1, 2026 [4] - The Midwest economy continues to expand, with clients' businesses growing and bankers winning new relationships [7] - The company anticipates mid-single-digit loan growth for the first quarter of 2026, with expectations of 6% to 8% growth for the year [32][34] Other Important Information - The company plans to sell the entire First Savings bond portfolio, approximately $250 million, to optimize the balance sheet [28] - The tangible book value per share ended the year at $30.18, a 12.7% increase from the prior year [11] - The company repurchased 272,000 shares for $10.4 million in the fourth quarter, totaling over 1.2 million shares for $46.9 million in 2025 [16] Q&A Session Summary Question: Update on balance sheet optimization - Management is evaluating balance sheet repositioning but expects any actions to be modest, focusing on selling the First Savings bond portfolio [27][29] Question: Expectations for loan growth in 2026 - Management expects mid-single-digit loan growth for the first quarter, with potential for 6% to 8% growth for the year [32][34] Question: Guidance on core expenses - Non-interest expenses are expected to increase by 3%-5% due to talent additions and the integration of First Savings [44] Question: Impact of FSFG on margin - The acquisition is expected to provide a lift to the margin due to interest accretion [72] Question: Outlook on buybacks versus M&A - Management is focused on the current acquisition and believes buybacks are the best short-term strategy given current valuations [92]

Financial Data and Key Metrics Changes - The company reported record total assets of $19 billion, total loans of $13.8 billion, and total deposits of $15.3 billion [2] - Record net income of $224.1 million and diluted earnings per share of $3.88, an increase of 13.8% from the previous year [3] - Fourth quarter net income totaled $56.6 million or $0.99 per share, with an annual return on assets of 1.21% and return on tangible common equity of 14.08% [3] - Efficiency ratio for the year was 54.5%, with revenues growing almost five times faster than expenses [3] Business Line Data and Key Metrics Changes - Commercial loan growth for the quarter was $153 million or 6% annualized, with year-to-date growth of $852 million, nearly 7% for all of 2025 [6] - Consumer segment contributed $44 million in loan growth for the quarter and $87 million for the year, driven by residential mortgage, HELOC, and private banking relationships [7] - Total revenues in Q4 included a $5.4 million increase in net interest income and a $0.6 million increase in non-interest income [11] Market Data and Key Metrics Changes - The fourth quarter was the strongest for deposit growth, with consumer segment driving increases in new households and balances [8] - Deposits increased by $155 million in the fourth quarter, with over $250 million in non-maturity balance growth [8] - The primary driver of deposit growth was through public fund depository relationships, which are higher cost but involve local government and public relationships [9] Company Strategy and Development Direction - The company aims to build on its Midwestern strength and grow organically through deeper relationships and smarter use of technology [5] - The acquisition of First Savings Group, adding approximately $2.4 billion in assets, is expected to enhance the company's presence in Southern Indiana and the Louisville MSA [3][4] - Integration efforts for First Savings Bank are on track, with a focus on community bank model and specialty verticals [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic and financial benefits of the merger, expecting to close on February 1, 2026 [4] - The outlook for loan growth in 2026 is projected to be in the mid-single-digit range, with expectations of 6% to 8% growth [32] - Management noted that asset quality remains strong, with stable non-performing assets and a robust coverage ratio [19] Other Important Information - The company plans to sell the entire First Savings bond portfolio, approximately $250 million, to optimize the balance sheet [25] - Non-interest expense for the year increased only 3.2%, demonstrating significant operating leverage [15] - The tangible common equity ratio increased to 9.38%, with share repurchases totaling over 1.2 million shares for $46.9 million in 2025 [15] Q&A Session Summary Question: Update on balance sheet optimization - Management is evaluating modest balance sheet repositioning, including selling the First Savings bond portfolio [25][26] Question: Expectations for loan growth in 2026 - Loan growth is expected to be in the mid-single-digit range, with strong pipelines across various segments [30][32] Question: Guidance on deposit repricing schedule - Approximately $800 million of CDs maturing in the first two quarters of 2026, with weighted average rates higher than current specials [34] Question: Outlook on operating leverage - Core operating leverage is expected to be less impressive due to talent additions, but overall growth in net interest income and fee income is anticipated [39] Question: Guidance on core expense base - Non-interest expense is budgeted to increase by 3%-5% due to talent additions and First Savings operating expenses [43] Question: Charge-off expectations - Charge-offs are expected to be in the range of $6 million to $7 million over the near term [81] Question: Impact of M&A on loan pipeline - Management sees M&A-related disruptions as opportunities for new client conversations and potential talent acquisition [58][60] Question: Buyback strategy - The company intends to be aggressive with buybacks if the stock price remains low, viewing it as a better use of capital than pursuing new M&A [88]

Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4][39] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4][39] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4][39] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [10][45] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5][39] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [7][42] - The average loan-to-value of CRE loans remained steady at 49% [5][40] Market Data and Key Metrics Changes - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4, primarily driven by $366 million increases in core deposits [8][44] - As of December 31, 2025, total uninsured deposits were $9.3 billion, representing 44.6% of total deposits [8][44] Company Strategy and Development Direction - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5][39] - The company plans to announce a new stock buyback program after approvals are received, with $12 million remaining under the current buyback program [4][39] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [10][45] - The effective tax rate for Q4 2025 was 20.23%, with expectations for 2026 to be between 20.5% and 21.5% [12][46] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [8][43] - The Tier 1 risk-based capital ratio increased to 13.27% from 13.15% in Q3 [12][47] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - The company is assuming deposit betas in the 60% range, with market competition remaining rational in Q4 [16][18] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - There are no particular trends observed, but some loans have been downgraded to special mention due to not meeting certain debt covenants [20][50] Question: Have you seen an elevated level of competition for incremental loan growth? - There is strong competition for the right type of assets and loans, particularly in the C&I segment, which has seen the most competition [29][52]

Core Viewpoint - Preferred Bank reported strong earnings for Q4 and the full year, with net income of $34.8 million for Q4 and $434 million for the full year, indicating robust profitability in the banking sector [3][5]. Financial Performance - The bank's net interest margin in December was 3.66%, slightly below the previous quarter, influenced by the December rate cut [2]. - Total cost of deposits was 3.17% in December, trending down by approximately six to seven basis points per month [2]. - For the full year, the bank earned $10.41 per share, positioning it among the top tier of the banking industry [3]. Loan and Deposit Growth - Preferred Bank experienced quarterly loan growth of $182 million, over 12%, and deposit growth of $115 million, or 7.4% [6]. - Year-to-date loan and deposit growth were reported at 7.3% and 7.2%, respectively [6]. - Management anticipates stronger loan demand in 2026, particularly in commercial real estate and C&I lending [6]. Credit Quality and Provisions - Criticized assets increased by $97 million due to a downgrade of a large relationship, with a provision of $4.3 million booked [4][8]. - Non-performing assets slightly declined, but the bank is prepared to address credit challenges within the next two quarters [11][18]. - The bank believes its reserves are adequate to cover credit situations, with qualitative factors representing 42.5% of total reserves [12]. Non-Interest Income and Expenses - The bank recorded a net gain of $1.8 million from the sale of two large OREO assets, contributing to non-interest income [13]. - Management expects first-quarter non-interest expenses to be between $21.5 million and $22.5 million, with a projected mid- to high-single-digit growth rate for the full year [16]. Capital Actions and M&A Outlook - The bank did not repurchase shares during the quarter, with future repurchases dependent on loan growth and deposit conditions [17]. - Management is reviewing potential M&A opportunities but has found pricing expectations unsatisfactory [18].

Group 1 - Children can contribute to a Roth IRA if they have earned income, and a custodial Roth must be opened by a parent or adult [1] - The maximum contribution limit for a Roth IRA in 2026 is $7,500, with an additional $1,100 for individuals aged 50 and older [2][29] - There are income limits that affect the ability to contribute the maximum amount, with a phase-out range for higher earners [2] Group 2 - There is no age limit for investing in a Roth IRA as long as the individual has earned income [3] - Investors can choose to manage their own investments or hire a professional, with options including online brokers, financial advisors, and robo-advisors [4][6][7] - Selecting the right mix of investments is crucial, with options including stocks, bonds, mutual funds, and ETFs, based on risk tolerance and investment horizon [12][16][17] Group 3 - Contributions to a Roth IRA can be made annually, and strategies include making a lump sum contribution at the start of the year or regular monthly contributions [21][22][24] - The performance of the account is influenced by both investment returns and fees, with a significant impact from expense ratios on long-term growth [19][27] - Investors should be aware of the potential tax implications when rolling over a 401(k) to a Roth IRA, particularly if moving from a traditional 401(k) [31][33]

Core Insights - The median bank balance for Americans under 35 is $5,400, which is lower than the $8,700 median for those aged 35 to 44, reflecting the financial challenges faced by younger adults [2][5] - Despite lower balances, Americans under 35 have shown consistent growth in their median bank balances over the past decade, being the only age group to increase at every three-year checkpoint tracked by the Federal Reserve [4][8] - Approximately 50% of Americans under 35 hold retirement accounts, indicating that savings extend beyond just bank balances [6] Summary by Category Bank Account Balances - In 2022, the median bank account balance for those under 35 was $5,400, up from $2,800 in 2013, showing a significant increase over the years [5] - The median balances for other age groups in 2022 were: 35-44 at $8,700, 45-54 at $8,000, 55-64 at $13,400, and 65 or older at $10,000 [5] Saving Trends - The upward trend in savings for those under 35 suggests that younger savers are building financial momentum, despite facing challenges such as student loans and housing costs [3][4] - Financial planners recommend focusing on personal savings goals rather than comparing oneself to others, emphasizing the importance of setting intentional financial objectives [6][7] Financial Planning Recommendations - Financial planners suggest saving enough to cover at least six months of take-home pay for emergencies, with the right target depending on individual circumstances [7] - Utilizing high-yield savings accounts or top CDs can help accelerate savings growth, highlighting the importance of earning higher interest [8]